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Question 43 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 43 Chapter 5 of +2- Part-
Q-43. - CH-2 - Usha +2 Book 2018 - Solution

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Question 43 Chapter 5 of +2-Part-1

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43. (Goodwill is not brought in Cash) The following was the balance sheet of Ajay, Vijay and Kamal as on 31-3-2018:

Liabilities  RsAssetsRs
Creditors 11,000Land & buildings50,000
Bills Payable 6,000Furniture7,500
Capital Accounts   Stock30,000
Ajay40,000 Debtors26,500
Vijay33,500 Cash1,500
Kamal25,00098,500  
  1,15,500 1,15,500

They share profits and losses in the ratio of 6: 5: 3. On 1-4-2015 they agreed to admit Subodh into partnership and give him a share of 10 paise in the rupee on the following terms:
(i) That Subodh should bring in Rs. 14,840 as capital.
(ii) That stock is depreciated by 10% and furniture by Rs. 900.
(iii) That a reserve of Rs. 1,300 be made for the outstanding repair bills.
(iv) That the value of land and buildings be brought up to Rs. 65,000. (v) That Subodh does not contribute anything for goodwill which was valued Rs. 8,400 for the firm.
Pass necessary journal entries to record the above arrangements and prepare the new Balance Sheet of the firm.

2. Check out the Solution of this question in Article Format:-

We are providing a solution of Question 43 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:

1. Check out the Solution of this question in Video Format:-

The video consists solution of question numbers from 42 to 44 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 43 from the flowing video by using time stamps of the video.

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Day - 86 | Solution of Questions Admission of a Partner | Chapter No. 5 | Accounts class 12 | PSEB |

The solution of Question 43 Chapter 5 of +2 Part-1: – 

Journal
DateParticulars
L.F.DebitCredit
      
1)Cash A/cDr. 14,840 
 To Subodh’s Capital A/c   14,840
 (Being capital brought by new partner)   
     
2)Revaluation A/cDr. 5,200 
 To Stock A/c   3,000
 To Furniture A/c   900
 To outstanding repairs A/c   1,300
 (Being assets and liabilities revalued)    
      
3)Land & building A/cDr. 15,000 
 To Revaluation A/c   15,000
 (Being assets revalued)    
      
4)Revaluation A/cDr. 9,800 
 To Ajay’s Capital A/c   4,200
 To Vijay’s Capital A/c   3,500
 To Kamal’s Capital A/c   2,100
 (Being profit on Revaluation Account transferred to Partners capital Account)   
      
5)Subodh’s Current A/cDr. 840 
 To Ajay’s Capital A/c   360
 To Vijay’s Capital A/c   300
 To Kamal’s Capital A/c   180
 (Being new partner’s share in goodwill adjusted in
Sacrifice ratio 6:5:3)
    
     
Revaluation Account
Particular
AmountParticularAmount
To Stock A/c 3,000By Land & Buildings A/c 15,000
To Furniture A/c 900   
To O/S Repairs A/c 1,300   
To Profit on revaluation transferred to Capital accounts     
– Ajay’ capital A/c 4,200    
– Vijay capital A/c 3,500    
-Kamal capital A/c 2,1009,800   
  15,000  15,000
Partners’ Capital Account
 
ParticularsAjayVijayKamalSubodhParticularsAjayVijayKamalSubodh
     By Balance b/d40,00033,50025,000 
     By Revaluation A/c4,2003,5002,100 
     By Bank A/c 14,840
     By Subodh’s Current
A/c
360300180 
To Balance c/d 44,56037,30027,28014,840     
 44,56037,30027,28014,840 44,56037,30027,28014,840
Balance Sheet
Liabilities
AmountAssetsAmount
Creditors 11,000Land & buildings 65,000
Bills Payable 6,000Furniture 6,600
Outstanding repair expenses 1,300Subodh’s current A/c 840
Capital Accounts  Stock 27,000
Ajay44,560 Debtors 26,500
Vijay37,300 Cash(1500+14,840) 16,340
Kamal27,280    
Subodh14,8401,23,980   
      
  1,42,280  1,42,280

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Working Notes :

Total goodwill of the firm=Rs 8,400  
Total Sales=1X8,400
 10
     
 =840 Not brought in cash  

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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